© Reuters. Bernstein’s best idea for 2024? Short Tesla stock
Bernstein is promoting short Tesla (NASDAQ:) stock as its “best idea for 2024,” with their analysts seeing nearly 40% downside risk from current levels.
Analysts have an Underweight rating on Tesla (TSLA) and a $150 per share price target.
Tesla stock closed 1.4% up on Thursday and it’s up 97% year-to-date.
“At a fundamental level, 2023 has been a very difficult year for Tesla, with 2023 EPS ~50% below consensus estimates at the start of the year. Yet amazingly, the stock has nearly doubled YTD,” analysts said in a note to clients on Friday.
Tesla’s primary challenge, according to Bernstein, centers around a demand issue linked to its limited and high-cost product lineup, primarily consisting of the Model 3 and Model Y.
Their analysis suggests that Tesla’s product family faces saturation and increased competition in the electric vehicle sector, leading to the necessity of price reductions that impact profit margins.
Analysts anticipate this challenge to persist, projecting a lack of new high-volume offerings from Tesla until 2026. The introduction of the Cybertruck is seen as having a limited…
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